Initial Public Offer

The offering of shares and stocks made by a company for the first time to the public is known as the Initial public offering. The main objective of such offering is to raise capital which would be used for business expansion. Private owned companies also offers shares because this gives them a chance to become a public traded company. The company wishing to offer such shares can take the help of Underwriting Firms who helps in determining the best offering price and the time when such shares should be made public.

Share Activist

A share activist is a person who takes part in the management of a corporation by using equity stakes. The main constituent of such a shareholder lies in comparative cheapness which may be enough to carry out a flourishing promotion. Relational Investors LLL, Santa Monica Partners Opportunity Fund LP are some well known share activist.

ARBITRAGE

ARBITRAGE is a term used when some advantage is taken in a situation where there is an imbalance between two markets. Here arbitrageur earns profits even though he doesn't invest anything. This works on the principle of “law of one price “which means same price trading in all markets.

Royalties

Royalties are payment made for using one’s asset or intellectual property and is ascertained as a percentage of net sales which is derived from the use of such asset. It generally means ownership in percentage from a given property. The terms and conditions are defined in a license agreement which includes copyrights, patents, trademarks and many other important clauses. License agreement is generally owned by government but in some cases it can also go to private hands.